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Fundamental analysis: CF Industries Holdings, Inc. (CF)

Awarener score: 8.7

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

• Business has been growing at an excellent pace. It's been more than average in relation to peer companies.
• CF Industries Holdings, Inc. business varies, ups and downs are rather normal. Risk is sufficient. It looks worse than most rivals.

Margins score: 8.2

• CF profit margins -on goods and services sold- are usually hardly sufficient. They stand slightly worse than rival companies.
• Business profit on sales tends to be huge. It's top tier when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain excellent in relation to peers.
• Earnings -before income taxes and interests on loans taken- tend to be very good in relation to total revenues. They're still better than most similar companies.
• Profits -before income taxes- are usually excellent considering total sales, and remain top tier when measured against rivals.
• Total net profit tends to be very good when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 9.6

• CF Industries Holdings, Inc. profit -on goods and services sold- has been growing at an excellent pace. It's been a slight improvement compared to competitors.
• In recent years, earnings -on operations- have been growing at an excellent step, which has been somewhat worse than comparable firms.
• Profits -available to repay debt and purchase properties- have been growing at an excellent pace, which compares similar to peer enterprises.
• Earnings -before income taxes and interests on loans taken- have been growing at an extremely fast tempo. It turns to be rather normal in relation to similar stocks.
• In past years, profits -before income taxes- grew at an extremely fast speed. It was slightly worse than rivals.
• In the previous years, growth trend on total net profit has been extremely high, and almost average when measured against peer companies.
• Earnings per share have grown at an extremely fast rhythm in past years. It's been close to average when compared to industry peers.

Miscellaneous score: 6.0

• CF had to pay sparse income taxes in relation to profits made in the past years. It's been slightly worse than peers.
• The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
• We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 9.5

• CF Industries Holdings, Inc. usually gets excellent returns on the resources it controls. It proves great when measured against peer firms.
• The company normally gets huge proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
• Profitability -in relation to owned resources- is usually paramount. It ranks top tier when measured against competitors.
• In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 6.8

• CF usually uses a significant portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is abundant. It stands top tier when measured against rival firms.
• The company is usually replacing part of the property, plant, and equipment that gets old, keeping some funds for something else. It can't keep forever, which is substantially worse when measured against industry peers.
• In the past twelve months it paid some dividends, considering the current stock price. It came slightly better than competitors.
• Dividend payments have been more or less stable in recent years. The company has behaved in a very weak position compared to similar firms.
• Dividend payments usually represent a minor portion of genuine funds generation and are most likely safe. Sustainability looks well ranked against comparable companies.
• The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains impressive in relation to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands excellent in relation to rivals.
• The company uses a modest portion of genuine fund generation to reward investors, which can probably be sustained. It still looks encouraging in relation to competitors.

Balance Sheet score: 6.4

• CF Industries Holdings, Inc. intangible assets (like brands and goodwill) represent some portion of resources controlled, according to accounting books. There could be some difficulties in liquidating them if the company ever gets in financial distress. It happens to be below average when measured against peer companies.
• The company has more than enough short-term resources to face short-term obligations. Liquidity concerns are non-significant. It turns to be in good shape compared to similar firms.
• Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains somewhat worse than rival firms.
• Controlled resources might be turned into cash and equivalents neither fast nor too slow. Liquidity and risk might be run-of-the-mill. It looks weak when measured against rivals.
• For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's in good shape compared to peer firms.
• For every dollar of short-term obligations, the company has enough dollars in cash and equivalents, which is somewhat better than similar enterprises.
• Usually, sales are on less than a month credit. It still ranks more than average in relation to peers.
• Normally has approximately somewhat less than two months of sales worth in inventory. It comes up as excellent in relation to competitors.
• On average, it takes approximately two months from the purchase to charging customers. It happens to be top-notch against peers.
• On average pays suppliers after a month and a half from the purchase. It ranks below average when measured against industry peers.
• The company pays its suppliers less than one month before charging its customers, so there's little money invested in working capital. It's excellent in relation to similar companies.
• Net interest expenses consume a portion of usual business earnings, but are bearable. It stands slightly better than rival firms.
• Business earnings have usually been very good when measured against loans taken. Cutting back reinvesting in the business, it could take less than two years to repay the obligations with current profitability. It ranks encouraging in relation to comparable enterprises.
• Revenues are low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks lacking compared to similar firms.
• Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still somewhat better than peer companies.

Valuation score: 8.0

• CF Industries Holdings, Inc. looks extremely cheap in relation to profits and financial position. It happens to be great when measured against competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
• In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands top-notch against similar companies.
• The company usually generates plenty more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share looks to be very attractive. It's still top tier when measured against industry firms.
• In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
• The company has barely more debt than cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks slightly better than similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation looks extremely cheap. Possible reasons are that the market might be betting current earnings will be very hard to sustain through time, or that the company has very high fund needs, a weak financial position, or that earnings aren't representative. If that isn't the case, the stock price could be extremely attractive. It ranks more than average in relation to peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks lacking compared to rival firms.
• The relation between the stock price and accounting book value is significantly high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains somewhat worse than peer firms.
• In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
• In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still excellent in relation to peer companies.

Total score: 7.6

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Awarener score: 8.7

Conclusion

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